I personally am not the biggest fan of fan fiction, as some of you might know. But rest assured that the Scanners "Head Asplode" pic I've used to lead off this article doesn't come from a place of distaste as much as pure shock at Amazon's insane, bold, and genuinely brilliant plan to sell legal fan fiction.

The service will be called Kindle Worlds, and here's how it works: Amazon has purchased the licensing rights to shows/books like Gossip Girl, Pretty Little Liars, and more. People can write their fan fiction based on these properties and make them available on Amazon legally (on Kindle, obviously) —but more importantly they can sell them. Proceeds will go to the rights-holders, and if the authors' works consists of over 10,000 words, the authors get the standard book royalty rate of 35% of total sales.

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This is completely insane, people. Amazon has just figured out how to make fan fiction legal, and get the original creators paid for it, the authors of the fan fics paid for it, and themselves paid for it.

And it's going to work. I have zero doubt about this. Most fan fic authors would jump at the chance to legally write for their beloved franchise, but with a possibility of getting paid and perhaps even recognition from the creator? It's going to be an instant, phenomenal success. The only question now is which properties are more interested in cash than in maintaining their integrity. I guarantee you Gossip Girl and Pretty Little Liars will have a lot of company by the end of 2013.

Here's Amazon's official press release:

SEATTLE—(NASDAQ: AMZN)—May 22, 2013—Today, Amazon Publishing announces Kindle Worlds, the first commercial publishing platform that will enable any writer to create fan fiction based on a range of original stories and characters and earn royalties for doing so. Amazon Publishing has secured licenses from Warner Bros. Television Group’s Alloy Entertainment division for its New York Times best-selling book series Gossip Girl, by Cecily von Ziegesar; Pretty Little Liars, by Sara Shepard; and Vampire Diaries, by L.J. Smith; and plans to announce more licenses soon. Through these licenses, Kindle Worlds will allow any writer to publish authorized stories inspired by these popular Worlds and make them available for readers to purchase in the Kindle Store.

Amazon Publishing will pay royalties to both the rights holders of the Worlds and the author. The standard author’s royalty rate (for works of at least 10,000 words) will be 35% of net revenue. As with all titles from Amazon Publishing, Kindle Worlds will base net revenue off of sales price—rather than the lower, industry standard of wholesale price—and royalties will be paid monthly.

In addition, with the launch of Kindle Worlds, Amazon Publishing will pilot an experimental new program for particularly short works—between 5,000 and 10,000 words. For these short stories—typically priced under one dollar—Amazon will pay the royalties for the World’s rights holder and pay authors a digital royalty of 20%.

Beginning today, interested writers are encouraged to visit Kindle Worlds (www.amazon.com/kindleworlds) to learn more and get a head start on writing. In June, the Kindle Worlds store is expected to launch with over 50 commissioned works from authors such as #1 New York Times best-selling author Barbara Freethy, Bram Stoker Award-winner John Everson and RITA Award-winner Colleen Thompson. At that time, the Kindle Worlds self-service submission platform, where any writer can submit completed work, will also open.

World Licensors benefit from Kindle Worlds because:

It’s an entirely new way to monetize their valuable franchises

It allows them to extend their Worlds with new stories and characters and more deeply engage with existing fans, while also reaching new audiences

Amazon Publishing will work with them to establish content guidelines that balance flexibility and openness for writers with what’s reasonable for the franchise

“Our books have generated a massive amount of fan fiction, and we see this as an evolution in publishing and a valuable way of broadening our brands and engaging fans,” said Leslie Morgenstein, President Alloy Entertainment. “When working with Amazon Publishing on this scale, we know we’re in good hands and everyone will benefit.”

“Seeing Pretty Little Liars fans adapt and create their own stories is both exciting and flattering and I think what Amazon Publishing is offering through Kindle Worlds is a great way to reward their ingenuity,” said Sara Shepard, author of Pretty Little Liars.

Writers benefit from Kindle Worlds because:

Amazon Publishing has already secured the necessary licenses to write about any Kindle World

They can earn royalties writing about established characters and universes

The Kindle Worlds self-service submission platform is easy to use

“I loved writing the characters in this world, the dynamics of the friendship between the four girls as they deal with life-threatening situations,” said Barbara Freethy, writing in Pretty Little Liars. “I also really enjoy the ongoing mysteries and surprising twists that always keep the reader guessing. It’s great that Amazon Publishing has given those who put passion into fan fiction the opportunity to commercialize this work.”

And readers benefit from Kindle Worlds because:

They can find a stream of new stories in Worlds they love

They can discover new Worlds and corresponding great new stories

As with all Kindle books these are “Buy Once, Read Everywhere”—they can read on Kindle or Kindle Fire as well as with a free Kindle app for all of the most popular devices and platforms

“At Kindle, we’re not only inventing on the hardware and software side of the business, we’re inventing new ways to create books,” said Philip Patrick, Director, Business Development and Publisher of Kindle Worlds. “Our goal with Kindle Worlds is to create a home for authors to build on the Worlds we license, and give readers more stories from the Worlds they enjoy. We look forward to announcing additional World licensing deals in the coming weeks.”

Amazon Publishing is engaged with additional rights holders from different areas of entertainment—books, games, TV, movies and music—and looks forward to announcing future deals soon. To get started writing works in licensed properties, visit www.amazon.com/kindleworlds for submission guidelines and updates on licensed properties.